Crown Resorts backed a $6.3 billion buyout from private equity giant Blackstone on Monday, giving billionaire James Packer an exit route from the Australian casino firm beset by scandals and regulatory setbacks.
Blackstone, which already holds around 10% of Crown, will take over a company facing regulator scrutiny after official investigations found it had knowingly dealt with criminal organizations then misled the authorities about it.
The gambling licence for Crown’s flagship A$2.2 billion casino skyscraper in Sydney remains suspended, more than a year after it was due to open. Crown’s main earner, its Melbourne casino, must operate with a government-appointed supervisor for two years.
As Crown’s biggest shareholder with 37% of the company, Packer’s vote will be pivotal to reach the 75% shareholder approval threshold. A spokesperson for Packer, who would walk away with about A$3.3 billion, declined to comment.
Read more: Reuters
